Option backdating list
So why not just grant stock options that are “in the money” from the start and not play around with the grant dates?
Companies can grant options at pre-selected prices if they choose, rather than the market price at the grant date.
It would appear that this was done in an attempt to avoid disclosure to shareholders. Because shareholders might balk at executives being given “in the money” options?
Companies have gone wrong because they simply haven’t followed these steps.With a lower exercise price, the holder is able to make a greater profit when the stock is sold on the open market.Backdating of stock options is, therefore, attractive because a date with a particularly low stock price can be selected.Federal regulators are so overloaded with investigations, that they are starting to rely on the suspect companies to hire investigators.Outside law firms are to conduct the investigations and hand over their findings to the SEC or federal prosecutors, who decide if the matters should be pursued.